What is a QCT?

HUD used 2000 Census data and the MSA/PMSA definitions established by the
Office of Management and Budget ("OMB") in 2006. Beginning with the 1990 census,
tract-level data are available for the entire country. Generally, in
metropolitan areas these geographic divisions are called census tracts while in
most non-metropolitan areas the equivalent nomenclature is Block Numbering Area
("BNA"). BNAs are treated as census tracts for the purposes of this
Notice.

The LIHTC Qualified Census Tracts were determined as follows:

1. The Area Median Gross Income was determined for each MSA/PMSA or
county.

2. The 60% of AMGI limit was determined for each MSA/PMSA or county, and is
defined by HUD to be 120% of the HUD Very Low Income Limits. The HUD Very
Low Income Limits are based on 50% of the AMGI, but are occasionally adjusted
for high housing costs, or low income limits; therefore, the 60% limit does not
always equal 60% of the AMGI.

3. For each census tract, the percentage of households below the 60% income
standard was determined by (a) calculating the average household size of the
census tract, (b) applying the income standard after adjusting it to match the
average household size, and (c) calculating the number of households with
incomes below the income standard.

4. Qualified Census Tracts are those in which 50% or more of the
households are income eligible and the population of all census tracts that
satisfy this criterion does not exceed 20% of the total population of the
respective area.

5. In areas where more than 20% of the population qualifies, census tracts
are ordered from the highest percentage of eligible households to the lowest.
Starting with the highest percentage, census tracts are included until the 20%
limit is exceeded. If a census tract is excluded because it raises the
percentage above 20%, then subsequent census tracts are considered to determine
if one or more census tract(s) with smaller population(s) could be included
without exceeding the 20% limit.